Issue link: http://psai.uberflip.com/i/1177164
W EEKLY EDITION OCTOBER 16, 2019 Ca ll in g o n Co mp e tit o rs' Cu sto me rs: A Ho t Ide a t h at Lea ves Som e Col d By Karleen Kos, PSAI Executive Director Legally, the answer is an unqualified "yes." In the capitalist system in which we do business, it is completely permissible to approach a competitor's customers. Sometimes that occurs passively (e.g., advertising the customer may or may not see) and someti mes it occurs actively (e.g., cold calling, making competitive bids – including low - balling prices or offering "free" toilets to switch providers). Just because something is legal, though, doesn't necessarily make it the best idea. Whether it is good str ategy for your company depends on a lot of factors. Even if you are not philosophically opposed to doing it, there are pros and cons to approaching your competitors' established customers. Many of these were expressed in a recent Facebook exchange on the s ubject and in conversations I have had with operators. Here is a representative sample of the points of view expressed. Yes, cold calling others' customers is fine, and you should do it. • "If you just sit by the phone and wait for it to ring you might be w aiting awhile … why do businesses hire sales people? Isn't it their job as a sales person to sell? You never know if the competitor is doing their job or not. If they are, then [the existing provider has] nothing to worry about. We move on [if that is the case], but if there is a problem, that is where we can help. The reason companies hire sales people is to keep the competitor on their best game. That is what is best for business." • "We earn every customer we have and not because we give away our services. If businesses (competitors) would raise standards as well as increase their average price for their services, honestly, everyone will win. […] We don't force customers to make the change. The previous service provider helped the customer make the choice. I'm happy to facilitate that change!" • "Sometimes customers have been with the same firm so long they don't know what they are missing. There is nothing wrong with showing them they have options." P AGE 16 CONTINUED ON PAGE 1 7